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Just when it looked like tariff turmoil might finally be settling down, President Trump opened up a new can of worms. Starting October 1, levies of 25% to 100% will kick in on a wide range of products. Here’s a breakdown of what’s on the latest tariff hit list, and which stocks are getting hurt or helped.
Pharmaceuticals
100% tariffs will apply to branded or patented pharmaceutical imports. There’s one huge exception: Foreign companies that have built or are building factories in the US get off scot-free.
Most major pharma firms already have plants here, or have broken ground on them as early as 2023, including Merck, Novo Nordisk, and Eli Lilly. Plus, back in July, Trump promised a lower 15% levy on drugs from the European Union, which currently manufactures 60% of Americans’ imported meds. EU officials believe this agreement should shield them from this new duty—although who the heck really knows these days?
Winners and losers: US-based Eli Lilly and Pfizer rose about 1.39% and 0.68%, respectively, on Friday. But many foreign drug manufacturers were largely unchanged, with Denmark’s Novo Nordisk down just 0.77%, Switzerland’s Novartis up 1.15%, and the UK’s AstraZeneca up 0.31%.
Household furnishings
Home renovations just got a lot tougher with a new 50% tariffs on foreign-made kitchen cabinets, bathroom vanities, and related products. Upholstered furniture will also get padded with an extra 30% in fees. Trump pointed out on Truth Social that these furnishings have been “FLOODING” the US, and it’s true that Americans import more furniture than they export, mainly from Vietnam, China, Mexico, and Malaysia.
Winners and losers: Williams-Sonoma recovered 0.21% by the end of day after tumbling this morning, while Restoration Hardware parent company RH lost 4.22%. But not all furniture firms suffered: Wayfair bucked the trend and inched 2.18% higher. Meanwhile, domestic furniture maker La-Z-Boy perked up from its TV coma by 2.53%.
Heavy trucks
Heavy trucks will get hit with 25% tariffs, although the damage could be minimal since many of the semis sold in the US are already made here. Still, some of the heavier haulers are built by European companies like Daimler and Volvo, which often have factories in Mexico.
Winners and losers: US-based truck company Paccar (with brands including Peterbilt and Kenworth) rose 5.16%. Meanwhile, German manufacturer Traton fell 12.65%, since it uses a Mexican plant to build its vehicles before shipping them to the US.—JD